Motilal Oswal: Muthoot Finance Logs Muted Q1 Business; Liquidity On Balance Sheet Increasing

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Muthoot Finance Ltd.’s Q1 FY21 profit after tax increased approximately 60% YoY to Rs 8.4 billion (2% miss).While total income missed our expectations by 8%, it was offset by lower opex and credit costs. However, according to management, the cost reduction is one-off and unlikely to sustain.As the company opened branches in May 2020, it witnessed more collections than disbursements. Hence, its loan book declined marginally QoQ.Subsidiary performance: Muthoot Finance took Rs 320 million Covid-19 provisions for non-gold portfolio in Q1 FY21.Muthoot Home finance’s asset under management stood at Rs 19.8 billion (flat QoQ/YoY) while profit after tax for the quarter was only Rs 4 million.Belstar Microfinance Ltd. investment and finance loan book was sequentially flat at Rs 26 billion while profit after tax declined approximately 36% QoQ/YoY to Rs 145 million.Gross non-performing loan ratio deteriorated 20 basis points QoQ to 1.1%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Muthoot Finance Logs Muted Q1 Business; Liquidity On Balance Sheet Increasing

Motilal Oswal: Muthoot Finance Logs Muted Q1 Business; Liquidity On Balance Sheet Increasing

Choose a plan